The five radio transmission towers would have been built only about 300 metres from the Canadian border, but now that won't happen after the Whatcom County Council rejected the appeal on Tuesday.
The new towers would have replaced ones already operating in Ferndale, Washington, but would be more powerful and taller.
Residents of both sides of the border said the towers, each of which would have 150 feet high and transmitting 50,000 watts each, would interfere with electronic equipment in parts of Washington and Tsawwassen, B.C.
Vicki Huntington, an independent MLA for Delta South, said the decision was a major hurdle that has been overcome.
"Their baby monitors [in Ferndale] can get Punjabi radio. In the churches, you can hear the radio stations over microphones and speakers," she said.
Huntington said she was surprised the application to make the move was even set in motion to begin with, given that there are restrictions on how close radio towers can be built near communities.
"That application was approved by the Federal Communications Commission in Washington, D.C., without recognizing that right across the border there were 20,000 individuals ... and the application made it look as though no one lived north of the border."
There still is the possibility this decision could be appealed at the Whatcom Superior Court.